Two new quorums for Boston
Boston FX & Boston FI launched in 2019
In March we launched Boston FX – the only FX quorum outside of London,
followed in May by Boston Fixed Income, which adds to our long standing
Fixed Income quorums in New York, London and Hong Kong.
FX: Amongst the topics at our launch were:
- Buy-side to buy-side trading, utilising dark pools. A few problems emerged
such as credit intermediation and the buy-side often being on the same side of the deal
(requiring intermediaries who could be predatory).
- The increased use of algo trading. Real money A/Ms are the fastest growing users of
FX algos, though they use them sparingly and in particular circumstances.
Algos provide data for audit trails and risk diffusion that banks may or may not be offering.
Fixed Income: At our Boston FI launch discussion, there was a broad discussion on e-trading.
There was a sense that the size of orders that could be executed electronically would increase and
while e-trading odd lots was not informative re where larger orders should go, the information about
who was active was helpful. Increased data available as a result of e-trading is double-edged;
it’s helpful but also creates a false impression of what constitutes “best execution”.